Highlights 2018

Highlights 2014-2
 

23 May 2018

Vedanta Resources plc Preliminary results for the year ended 31 March 2018

Financial highlights

  • Revenue increased by 33% to US$15.4 billion (FY2017: US$11.5 billion) driven by firmer commodity prices and volume ramp-ups
  • EBITDA at US$4.1 billion, up 27% (FY2017: US$3.2 billion)
  • Robust adjusted EBITDA margin◊ of 35% (FY2017: 36%)
  • Underlying profit◊ per share of US cents 58.3 (FY2017: US cents 16.1 per share)
  • Basic earnings per share of US cents 84.8 (FY2017: a loss of US cents 8.2), mainly due to higher EBITDA and reversal of a previously recorded non-cash impairment charge at Oil & Gas. This was offset by a non-cash impairment charge at Iron Ore Goa
  • ROCE◊ improved by 2.1% to 14.9% (FY2017: 12.8%)
  • Free cash flow (FCF)◊ post-capex of US$0.9 billion (FY2017: US$1.5 billion)
  • Gross debt at US$15.2 billion (FY2017: US$18.2 billion), a reduction of US$3 billion in 12 months (including repayment of $1.2 billion of temporary borrowing at Zinc India)
  • Net debt◊ at US$ 9.6 billion (FY2017: US$ 8.5 billion)
  • A proactive refinancing of US$2.4 billion through a bond issuance and bank loans improved average maturity at Vedanta Resources plc to about four years at March 2018 (March 2017: approx. three years)
  • Moody’s upgraded the Corporate Family Rating (CFR) by one notch from ‘B1/Stable’ to ‘Ba3/Stable’
  • Final dividend announced of US cents 41 per share (total dividend of US cents 65 per share), with a yield of 6%
  • Vedanta Limited announced a record interim dividend of c. US$1.2 billion in March 2018, of which c. $600 million was received by Vedanta Resources plc and used for deleveraging
  • Contribution to the exchequer of US$5.4 billion in FY2018
  • Vedanta Limited’s resolution plan to acquire Electrosteel Steels Limited approved by NCLT, the acquisition, subject to completion of due processes, will complement the Group’s existing Iron Ore business through vertical integration.

Business highlights

  • March 2018 exit run-rate of over 200kboepd
  • Growth projects on track with contracts of US$1.3 billion (gross) awarded

Zinc India

  • Record annual production of refined zinc-lead at 960kt
  • Record annual production of refined silver at 17.9 million ounces
  • On track for ramp-up of mined metal to 1.2mt by FY2020

Zinc International

  • Annual production in line with guidance
  • Gamsberg project on track with production expected by mid-CY 2018

Iron Ore

  • Mining cap allocation for Karnataka increased from 2.3mt to 4.5mt
  • Goa mining operations shut due to state-wide ban

Copper India1

  • Record annual production

Copper Zambia

  • Annual mined metal production at 91kt, 3% lower y-o-y
  • New contractor-partnering model getting into place

Aluminium

  • Record annual production at 1.7mt, with an exit run-rate of c.2.0mtpa

Power

  • 1,980MW Talwandi Sabo power plant achieved 93% availability in Q4 FY2018 (FY2018: 74%)

Anil Agarwal, Chairman of Vedanta Resources plc, commented:

“It has been another successful year for Vedanta as we continued to deliver across our strategic priorities. We reached record production levels at several of our businesses. We transformed our approach to developing our assets, which gives me confidence of efficient and productive ramp-ups across our world class assets. We continue to stay focused on optimising capital allocation and strengthening our balance sheet and deliver superior shareholder returns. Vedanta remains well positioned to capitalise on India’s growing resources demand. I look forward to another strong year for the company.”




1 Operations at Tuticorin Smelter halted due to pending renewal of its consent to operate

Consolidated Group results

(US$ million, unless stated)
FY2018 FY2017
Revenue 15,359 11,520
EBITDA 4,051 3,191
EBITDA margin 26% 28%
Adjusted EBITDA margin 35% 36%
Operating profit before special items 2,781 2,161
Profit/(loss) attributable to equity holders of the parent 236 (23)
Underlying attributable profit/(loss) 162 45
Basic earnings/(loss) per share (US cents) 84.8 (8.2)
Profit/(loss) per share on underlying profit (US cents) 58.3 16.1
ROCE % * 14.9% 12.8%
Dividend (US cents per share) 65 55

Indicates alternative performance measures that are defined in detail in "Other information".

* Recomputed on the basis of operating profit before special items and net of tax outflow, as a ratio of average capital employed